This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Airline, Brazil ETFs Post Biggest Gains

NEW YORK (TheStreet) -- The eight-month-old Claymore/NYSE Arca Airline ETF (FAA) was the best-performing exchange traded fund in the third quarter as airline companies loaded up planes with passengers over the summer.

The Claymore/NYSE Arca Airline ETF returned 51%, beating the No. 2 Market Vectors Brazil Small-Cap ETF (BRF) by 6 percentage points. (Leveraged funds were excluded from our review. The top leveraged fund was Direxion Daily Financial Bull 3X Shares (FAS), which rocketed 78%.

Two key metrics for the measurement of airline health are "available seat miles" and "revenue passenger miles." Available seat miles measures capacity by counting the number of seats available times the distance traveled. Revenue passenger miles multiplies paying passengers by the number of miles traveled. This allows the "load factor" percentage to be found by dividing revenue passenger miles by available seat miles.

The U.S. airline industry's load factor climbed to more than 80% in July and August from a low of 70% in January. AirTran Airways (AAI) set a new personal-best September load factor of 77% on an 11% increase in revenue passenger miles compared with 12 months earlier. Continental Airlines (CAL) traffic gained 7% over the same period, and its load factor hit 81.5% on restricted seat capacity.

Taken as a group, the airlines held by the Claymore/NYSE Arca Airline ETF are expected by analysts to see a smaller decline in revenue than in the prior quarter. This optimism combined with relatively quiet energy markets led to super-cruising third-quarter return velocities of 189% in UAL (UAUA), 98% in AMR (AMR), 63% in US Airways Group (LCC), 86% in Continental and 55% in Delta Air Lines (DAL).

The Market Vectors Brazil Small-Cap ETF, started just over four months ago, is weighted toward 12% real estate, 10% homebuilders, 6.9% retail, 5.4% commercial services, 5.4% building materials and 5% telecommunications. If Rio wins the contest to host the 2016 Olympics, this fund is well-placed to score gold. Regardless, its fortune is tied to the rising standard of living in Brazil.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs